Breaking the Code of Change

Abstract

This work gathers together a collection of debates on organizational change. The articles are arranged into three groups - point counterpoint, and commentary - to give a dynamic, conversational appeal. It offers an overview of the strengths and weaknesses of "Theory E" and "Theory O" of change.; Introduction - resolving the tension between Theory E and O of change. Section 1 purpose of change - economic value or organizational capability: Value maximization and the corporate objective function, Michael Jensen; the puzzles and paradoxes of how living companies create wealth - why single-valued objective functions are not quite enough, Peter M. Senge; purpose of change - a commentary on Jensen and Senge, Joseph Bower. Section 2 leadership of change - directed from the top or high involvement and participative: Effective change begins at the top, Jay A. Conger; the leadership of change, Warren Bennis; embracing paradox - top-down vs participative management of organizational change - a commentary on Conger and Bennis, Dexter Dunphy. Section 3 focus of change - formal structure and systems or culture: The role of formal structures and processes, Jay R. Galbraith; changing structure is not enough - the moral meaning of organizational design, Larry Hirschhorn; initiating change - the anatomy of structure as a starting point - a commentary on Galbraith and Hirschhorn, Allan R. Cohen. Section 4 planning of change - planned or emergent: Rebuilding behavioural context - a blueprint for corporate renewal, Sumantra Ghoshal and Christopher A. Bartlett; emergent change as a universal in organizations, Karl E. Weick; linking change processes to outcomes - a commentary on Ghosal and Bartlett and Weick, Andrew Pettigrew. Section 5 motivation for change - financial incentives lead or lag and support: Compensation systems and organizational change - ideas and evidence from theory and practice, Karen Wruck; compensation - a troublesome lead system in organizational change, Gerald E. Ledford and Robert L. Heneman; pay system change - lag, lead or both? - a commentary on Wruck and Ledford, Edward E. Lawler III. Section 6 consultants' role in change - large knowledge driven or small process driven: human performace that increases business performance - the growth of ch